FAQ

/FAQ
FAQ 2017-07-20T18:41:40+00:00
Is the Independent Gift Fund (iGiftFund) a nonprofit organization? 2017-07-26T07:32:11+00:00

The Independent Charitable Gift Fund (iGiftFund) is recognized by the IRS as a tax-exempt public charity under Internal Revenue Code Section 501(c)(3). You can deduct contributions made to your fund under Section 170 of the Code. iGiftFund’s IRS tax identification number is: 81-2576201.

What does iGiftFund do? 2017-07-27T14:36:41+00:00

The iGiftFund is a charitable organization that enables you to set up, manage, and pass along your charitable legacy in a simple, tax-wise, and meaningful way. As pioneers of the independent donor-advised fund experience, we offer donors the highest degree of flexibility and creativity in establishing your fund, naming it, investing its assets, supporting your favorite charities, and passing on your legacy to future generations. We provide fiduciary management and hassle-free administrative services so that you can focus on what you and your family like most: supporting your favorite charitable organizations and causes, and passing on your values to the next generation. To cover the costs associated with these services, we charge an account administrative fee. iGiftFund’s fees are competitive in the marketplace and are charged directly to your donor-advised fund, quarterly in advance.

Who can open a donor-advised fund? 2017-07-26T07:34:45+00:00

Individuals, families, trusts, companies, foundations, and other entities can start a donor-advised fund account at iGiftFund by completing a simple application and contributing assets.

iGiftFund may also accept contributions from other donor-advised funds and private foundations, and can be named as the beneficiary of charitable trusts, retirement plans, life insurance policies, and bequests.

What are the minimums to open a donor-advised fund? 2017-07-27T15:03:58+00:00

To start a donor-advised fund with the iGiftFund, you’ll need to make a contribution of $5,000 or more. Once your account is established, you and others can make subsequent contributions of $1,000 or more. Please note, you may set up a donor-advised fund now but fund it later; for example, as part of your overall estate plan.

Is there a minimum account balance I must maintain? 2017-07-27T14:41:34+00:00

There is no minimum balance for a donor-advised fund. There is a minimum administrative fee of $300 annually.

Can I name my donor-advised fund? 2017-07-20T18:52:33+00:00

Yes. You have maximum flexibility in naming your fund. Most donors choose a name that reflects the family name, such as “The Jones Family Fund” or “The Jones Family Foundation.” You may also select a name that enables you and your family to remain anonymous.

How quickly can I create a donor-advised fund? 2017-07-26T07:35:51+00:00

At iGiftFund, most funds can be established in a day. Once you submit a completed donor application and contribution form, your account is established and ready to receive contributions. Many will send a check along with the application. If you want your financial advisor to be involved, have them contact us to coordinate the gift acceptance, asset transfer process and investments.

Can my children be involved in my donor-advised fund? 2017-07-20T18:54:17+00:00

Yes. You can name them as an advisor, contingent advisor, or successor advisor to your fund. We are somewhat unique in allowing children and grandchildren, as young as 8 years, to participate “under your direction” in your donor-advised fund.

Can my donor-advised fund have multiple successors? 2017-07-20T18:54:57+00:00

Yes. Your account assets can be split between multiple successors. Or, you can have your successors share in the advising responsibilities. Your successor advisors can also name their own successor advisors. We offer several creative ways in which your donor-advised fund can continue in perpetuity.

How are the assets in my donor-advised fund account invested? 2017-07-26T07:36:53+00:00

You can create an investment program that’s tailored to your individual goals and objectives. iGiftFund works with all custodial platforms, and each investment account is separated and can be individually managed on your familiar investment platform. You may recommend your trusted financial advisor to manage investments, in open architecture, either on a brokerage (transactional) basis or on a managed account (fee) basis, subject to iGiftFund’s investment guidelines.

What types of fees are charged to my donor-advised fund? 2017-07-27T14:42:33+00:00

We charge an administrative fee quarterly in advance to your account. These fees cover gift acceptance, investment oversight, grant-making, recordkeeping, annual audits, tax filing, quarterly statements, insurance, and various other operating expenses.

We charge any investment management fees to your account. These fees vary according to the investment program that you and your financial advisor recommend.

What happens to my donor-advised fund if there are no successors? 2017-07-26T07:37:34+00:00

You can designate one or more charitable organizations as charitable beneficiaries. Or, you can distribute the account’s assets in perpetuity in your name. If you don’t select either option, iGiftFund will annually distribute 5% of your account’s balance to the charitable organizations that best match your grant history and intent.

What types of assets can I contribute to my donor-advised fund? 2017-07-26T07:37:58+00:00

iGiftFund can accept a wide range of assets. These include:

  • Cash
  • Publicly traded securities including stocks, bonds, mutual fund shares
  • Restricted and controlled stock
  • Privately-held securities (“C” or “S” Corp shares, LLC of LP interests)
  • Real estate
  • Life insurance policies
  • Private foundation grants or terminations
  • Bequests
  • The named beneficiary of charitable remainder trust or charitable lead trust
  • The named beneficiary of an IRA, 401(k), or other retirement account
  • Tangible and intangible personal property

Tax regulations vary by the type of asset, and are subject to change. Call us if we can help in the initial planning of your contribution. We will work with you and your trusted advisors. Our experience (particularly with accepting and holding complex and hard-to-value assets) is among the longest in the industry.

Can contributed assets be held in kind in a donor-advised fund? 2017-07-20T19:01:38+00:00

Upon review, we can accept and hold assets in kind. When they’re eventually sold, you can recommend how you’d like to reinvest the proceeds.

At what point is a contribution considered a charitable donation? 2017-07-20T19:02:19+00:00

A contribution becomes a donation when the assets leave your control and become the property of the iGiftFund. For a check, it’s generally the post-marked date on which it was mailed. For noncash, it’s generally the date on which the contributed assets appear in the iGiftFund’s investment account, or when the title transfers.

What is the best type of asset that I can contribute to my donor-advised fund? 2017-07-20T19:03:18+00:00

The most tax-effective contributions are appreciated securities that you have owned for more than one year. You’ll avoid any capital gains tax on the securities, and you’ll receive the highest income tax deduction available—better than those of a private foundation.

Can other people contribute to my donor-advised fund? 2017-07-20T19:05:31+00:00

Anyone can make tax-deductible charitable contributions to your fund. Contributions are tax-deductible for the donor and must meet the criteria outlined in the Program Description and Guidelines.

Can I use my donor-advised fund for fundraising? 2017-07-20T19:06:02+00:00

No

What happens when the iGiftFund receives my contribution? 2017-07-26T07:40:16+00:00

When a contribution is received and accepted, iGiftFund will deposit the proceeds of the contribution into your donor-advised fund, and will work with you or your recommended investment advisor to liquidate and reinvest the proceeds, or hold the assets in kind.

What tax benefits do I receive? 2017-07-27T14:44:52+00:00

Because of iGiftFund’s public charity status, your contributions qualify for the highest tax benefits available:

  • You receive an immediate and maximum income tax deduction.
  • You avoid capital gains tax.
  • Your fund is not subject to estate taxes.
  • Assets in your fund can grow tax free.
  • If you are subject to alternative minimum tax (AMT), your contribution will reduce your AMT tax liability.

The Program Description and Guidelines is a good reference for tax questions. The rules and regulations regarding tax deductions for charitable giving vary at the state level. Please consult your tax advisor or call us for more information.

How long will it take for my contribution to appear in my account? 2017-07-27T14:47:28+00:00

Typically, your account is open within 24 hours, and funded upon the receipt of your contribution. On some occasions (particularly if assets are being transferred from one financial institution to another), the process can take anywhere from two to six weeks. If you’re concerned about timing, we recommend that you contact your advisor and encourage the firm to expedite the transfer. Contact us as well—we have a great deal of experience in expediting transfers.

Can I contribute complex assets, such as privately held securities, real estate, and life insurance policies? 2017-07-27T14:47:58+00:00

Yes. We have extensive experience in accepting complex and hard-to-value assets. Please contact us early in your planning process. Our experience in accepting complex assets is among the longest in the industry. We will work with you and your trusted advisors to coordinate asset transfers and gift acceptance.

Can I name my donor-advised fund as the beneficiary of my IRA, 401(k), or other retirement account? 2017-07-27T14:52:03+00:00

It cannot be used for a donor-advised fund.

If you are 70 ½ years old, you may qualify for a Qualified Charitable Rollover of up to $100,000 from a traditional IRA account. The rollover can count toward your required minimum distribution. Contact us about how this strategy can be used with other types of funds that do qualify for accepting charitable rollovers, such as a Designated Fund.

Can I contribute a commercial annuity? 2017-07-20T19:12:45+00:00

Yes, but typically the transfer will trigger a taxable event. Consult your tax advisor first.

What is the IRS Form 8283? 2017-07-27T14:52:54+00:00

You must file Form 8283 if the amount of your deduction for all noncash gifts is more than $5,000 (except certain publicly traded securities). Blank forms and instructions can be obtained from the IRS website through this link. If iGiftFund disposes of those assets within three years of the date of your contribution, iGiftFund will prepare Form 8282 and submit it to the IRS.

Will I get a gift acceptance receipt for my contributions? 2017-07-20T19:14:33+00:00

Yes. You will receive a written confirmation of your contribution(s). This confirmation serves as a receipt for your taxes. It will also be available in your DonorView portal.

What happens to my contribution after it’s accepted? 2017-07-26T07:43:16+00:00

We work with you and your recommended investment advisor to invest the proceeds according to your recommendations. If you don’t recommend a financial advisor, you’ll be given a choice of no-load mutual fund options. Alternatively, your fund’s assets can be kept in iGiftFund’s pooled Liquidity Fund, pending your decision on investments.

Can the income accrued in my donor-advised fund be deducted as an additional charitable donation? 2017-07-20T19:16:05+00:00

No.

Why is the net amount in my donor-advised fund account different from the amount of my charitable deduction? 2017-07-20T19:37:39+00:00

This difference is typically due to interim market fluctuations and liquidation costs. Consult your tax advisor to determine your charitable tax deduction.

How are capital gains treated for gifts of appreciated securities? 2017-07-26T07:44:10+00:00

Since iGiftFund is a public charity, we do not pay a capital gains tax when we sell gifted securities. Therefore, you pay no capital gains tax on securities that you contribute to your donor-advised fund.

How do I make grants once my donor-advised fund is funded? 2017-07-27T14:56:18+00:00

You can recommend grants online when logged in to your account in the DonorView portal, or you may download a grant recommendation form, which you can complete and then email, mail, or fax to iGiftFund.

What does it mean to “advise”? 2017-07-27T16:04:09+00:00

Tax laws for donor-advised funds require that you relinquish ownership and control over contributed assets. However, as a donor advisor, you retain the privilege to advise iGiftFund on how your fund is named, how the funds are invested, how the funds are granted, and how your fund will carry on after your death. “Advising,” in contrast to “directing,” is the key to your receiving superior tax benefits.

What do I need to know when I’m making grant recommendations? 2017-07-27T14:58:05+00:00

Submitting a grant recommendation to iGiftFund is easy. However, despite the best of intentions, sometimes a donor’s grant recommendation is delayed or isn’t approved when it appears that it won’t be used for only charitable purposes.

If you keep the following in mind, you can help minimize processing delays: A grant must be recommended exclusively for charitable purposes. Among other things, this means that you cannot recommend:

  • A grant to a non-charitable organization
  • A grant from which you or your family would receive an impermissible benefit
  • A grant for admission to a charitable event if, in exchange for the grant, goods or services will be provided to you or anyone else
  • A grant for a specified tuition payment or for a scholarship where the donor(s) or related parties have sole or majority discretion over the recipients
  • A grant to cover the cost of memberships where “more than incidental benefits” will be received
  • A grant to a an individual
  • A grant to satisfy a pre-existing pledge
  • A grant to political contributions, or to support political campaign activities
What types of public charities can donor-advised funds make grants to? 2017-07-27T14:59:15+00:00

There are two different kinds of 501(c)(3) organizations: public charities and private foundations. iGiftFund will make grants to IRS-recognized public charities and organizations recognized as “private operating” foundations. The IRS also considers other organizations such as religious organizations and educational institutions to be “public charities.” iGiftFund maintains a database of these qualified charities that includes the most up-to-date information from the IRS.

If an organization is not currently listed in our database, this does not necessarily mean that a grant cannot be made to the organization. However, it will require further review. If you don’t find your organization in the DonorView portal, please submit the organization’s contact information: phone number, website URL, physical address, etc.

Can I make grant recommendations to a foreign charity? 2017-07-20T19:21:48+00:00

You have two options for using your donor-advised fund to support charities outside the U.S. You can recommend a grant to an American charity that works overseas, or you can recommend a grant to a qualified American intermediary charity that will, in turn, make a grant to your preferred organization. Contact us for information regarding qualified intermediary charities and fees.

Can I make an anonymous grant? 2017-07-26T07:48:05+00:00

Yes. If you request anonymity on the Grant Recommendation Form, iGiftFund will make the grant without disclosing your identity to the grantee organization. This can be done selectively or for all grants.

How many grants can I recommend in a year? 2017-07-27T15:00:05+00:00

There’s no limit to the number of grants that you can recommend in a year.

What is the minimum amount for a grant? 2017-07-26T07:48:37+00:00

iGiftFund’s minimum grant amount is $100.

How quickly are my grants processed? 2017-07-27T15:00:56+00:00

iGiftFund typically processes grants within 5 days.

Can I have the grant check sent to me so that I can present it to the organization? 2017-07-20T19:25:05+00:00

Yes, please call us for details.

Will my company match my grant that I recommend out of a donor-advised fund? 2017-07-27T15:01:55+00:00

Many do, please consult with your employer.

How are grants distributed to the charities? 2017-07-27T15:02:30+00:00

iGiftFund sends the recommended charity a grant via check or electronic funds transfer.

Will I receive confirmation of grant distributions? 2017-07-27T15:04:50+00:00

Yes, you will receive a copy of the grant transmittal letter in the DonorView portal

How can I prevent charities from soliciting me even though I’ve already recommended a grant to them? 2017-07-20T19:28:01+00:00

When you recommend grants to a charity, you have three “acknowledgement options.” The one that you choose will appear on the grant transmittal letter that accompanies the grant check. The three options are:

  • Name, address, and donor-advised fund name
  • Fund name only
  • Anonymous
What types of statements will I receive? 2017-07-27T15:10:03+00:00

Statements will be posted in your DonorView portal with email notification.

  • We will issue you quarterly statements that summarize the activity and balance of your fund.
  • You will receive an acknowledgement for contributions made to your account. This letter also serves as your receipt for tax purposes.
  • You will receive a copy of grant transmittal letters that we mail to the charity with the grant check.